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Spot gold rose 0.2% to $ 1,875.61 per ounce before 0316 GMT. U.S. gold prices rose 0.2% to $ 1,881.20.
“Gold prices follow a near-term bull movement, driven by a weaker dollar and a new pressure of coronavirus that may be holding back, noting further stimulus that ahead, ”said Margaret Yang, strategist at DailyFX.
News that Britain and the European Union were close to seizing on a distant trade deal on Wednesday lifted the Euro and British pound, pushing down the dollar.[USD/]
Harbor-safe gold has also benefited from the spread of a more contagious form of the virus in Britain that has forced the country to impose eradication restrictions.
The risks posed by the new virus variant and U.S. infectious diseases have kept investors optimistic about the U.S. stimulus bill despite Trump’s threat to block the $ 900 billion relief package.
Countering the economic blow of the pandemic, Wednesday’s data showed rising unemployment claims in the U.S. and a decline in consumer spending for the first time since May.
Gold is considered a hedge against inflation and silver damage.
Gold prices will move in conjunction with COVID-19 developments next year, while President Joe Biden’s policy on the dollar and Sino-US relations will also confirm the metal’s path, Yang’s DailyFX reported.
On the technical front, gold may test resistance at $ 1,888 per ounce, a break above that could lead to a gain to $ 1,904, Reuters technical analyst Wang Tao said.
Silver climbed 0.6% to $ 25.69 an ounce. Platinum gained 0.3% to $ 1,017.43 and palladium rose 0.4% to $ 2,333.60.
Most markets will be closed Friday for Christmas.
Reporting by Nakul Iyer in Bengaluru; Edited by Subhranshu Sahu, Aditya Soni